Mountain Province Diamonds (MPVD) Q4 2024 earnings summary

Executive summary

• Achieved a 60% year-over-year improvement in safety, with 3.4 million hours without a lost-time injury.

• Record plant throughput of 3.63 million tons processed in 2024, despite challenging diamond market conditions.

• Revenue declined to $267.7M for 2024, down from $328.6M in 2023, with a net loss of $80.8M compared to a $43.7M loss in 2023.

• Diamond prices averaged 20% lower than 2023, directly impacting revenue and earnings.

• The company faces material uncertainty regarding its ability to continue as a going concern due to negative cash flows and a working capital deficit of ~$120M.

Financial highlights

• Adjusted EBITDA for 2024 was CAD 90.7 million, down from CAD 155 million in 2023.

• Revenue for 2024 was CAD 268 million, compared to CAD 329 million in 2023, with 2.72 million carats sold at an average price of $72 per carat.

• Net loss after tax for 2024 was CAD 80.8 million, compared to a loss of CAD 43.7 million in 2023.

• Basic and diluted loss per share was $0.38, compared to $0.21 in 2023.

• EBITDA margin declined to 34% in 2024 from 47% in 2023.

Outlook and guidance

• Focus remains on safety, cost control, and production as the company transitions to higher-grade ore in 2025.

• Anticipates higher production in 2026, supported by recent refinancing and liquidity measures.

• Management forecasts negative cash flows and a cash shortfall over the next 12 months, with ongoing negotiations for additional working capital facilities.

• Expects improved diamond market conditions as supply-demand balance shifts favorably.